sole trader or limited company ?
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Hi Experts,
Iam planning to set up a small-scale business (in UK) which involves importing goods from other countries. After reading a lot through various info sites on starting up new businees iam up against one question which iam bit confused about.
I would like to run the business on my own from my home (not planning to employ others )
I understand that if i register my company as sole trader the risk might be high since the liability is not limited and can also put even ur personal assets at risk. Then i come across the private limited company option where the liability is limited. But then i would need to register at company house , allocate specific salary to me (MD) , show returns etc etc. So...
1) Are there good insurances in place which can protect sole traders in the worst case of financial trouble/ disputes etc so that their assets are not at risk ? I know there might be many sole traders here, so maybe you guys can throw some light ?
2) Or If i register as limited company.would i be able to use the company profits for my own personal purpose ? would i be allowed to run the company from my home ?
Guess there questions gives a good idea of the types of queries that i as a newbie to business have. All suggestions welcome , even if it covers other related topics.
Many thanks for all your help...
Iam planning to set up a small-scale business (in UK) which involves importing goods from other countries. After reading a lot through various info sites on starting up new businees iam up against one question which iam bit confused about.
I would like to run the business on my own from my home (not planning to employ others )
I understand that if i register my company as sole trader the risk might be high since the liability is not limited and can also put even ur personal assets at risk. Then i come across the private limited company option where the liability is limited. But then i would need to register at company house , allocate specific salary to me (MD) , show returns etc etc. So...
1) Are there good insurances in place which can protect sole traders in the worst case of financial trouble/ disputes etc so that their assets are not at risk ? I know there might be many sole traders here, so maybe you guys can throw some light ?
2) Or If i register as limited company.would i be able to use the company profits for my own personal purpose ? would i be allowed to run the company from my home ?
Guess there questions gives a good idea of the types of queries that i as a newbie to business have. All suggestions welcome , even if it covers other related topics.
Many thanks for all your help...
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06 Nov 2009 03:55
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